US Stocks Finish Lower Amid US-China Trade Truce and Big Tech Earnings

US stocks wrapped up lower on Thursday, with the tech-heavy Nasdaq leading the retreat, as investors digested the implications of the US-China trade truce and parsed through the latest earnings reports from the "Magnificent Seven" tech giants, including Apple and Amazon, which are set to report after the bell.

Key Takeaways:

• The Nasdaq saw the steepest drop, sliding 377 points, or 1.6%, to 23,581, with the Dow Jones slipping 110 points, or 0.2%, to 47,522, and the S&P 500 falling 68 points, or 1%, closing at 6,822.
• Investors are weighing the trade developments between Presidents Trump and Xi, which have dampened expectations for another interest rate cut.
• Apple and Amazon's quarterly results after the bell are set to provide a fresh catalyst for the market, with Bank of America analysts estimating Amazon's revenue of $179 billion and operating income of $20.4 billion, both above consensus forecasts.
• The trade truce has delivered a 12-month pause in new tariffs and trade curbs but little in the way of lasting resolution, with Federl Chair Jerome Powell cautioning that a December rate cut is "not a foregone conclusion."
• Eli Lilly shares jumped after the drugmaker raised its sales outlook, while Chipotle slumped and Starbucks gained on better-than-expected same-store sales.

Statistics:

• The Nasdaq fell 1.6% to 23,581
• The Dow Jones slipped 0.2% to 47,522
• The S&P 500 fell 1% to 6,822
• Amazon's estimated revenue of $179 billion
• Amazon's estimated operating income of $20.4 billion
• Alphabet shares up 7.5% in premarket trading
• Microsoft shares down 2.5%
• Meta Platforms shares down 9.15%

Sources:

• Bank of America analysts
• Reuters
• Fox
• CNBC
• Bloomberg
• Wall Street Journal